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Carrier Profiles

XPO Logistics, Inc. Leaps Upwards in Second Quarter 2013

By Sandy Long
Posted Aug 6th 2013 2:55AM

With chairman and CEO Bradley Jacobsâ€™ hands on the tiller, XPO
Logistics, Inc. has shown a very real leap up in revenue for the second quarter
of 2013. XPO Logistics has grown in its three business units, freight
brokerage, expedited transportation and freight forwarding, to 22,000 ground,
sea and air carriers to serve over 8,500 customers in the manufacturing,
industrial, commercial, life sciences and government sectors with a second
quartertotal revenue of $137.1 million.

XPO Logisticsâ€™ press
release of July 30, 2013 reports, â€œTotal revenue was $137.1 million for the
second quarter, a 151.4% increase from the same period in 2012. Gross margin dollars increased 128.4%
year-over-year to $19.3 million, and gross margin percentage was 14.1%.

â€œFor the second quarter of 2013, the company reported a net
loss of $17.4 million, compared with a net loss of $5.2 million for the same
period in 2012. The net loss available to common shareholders was $18.1
million, or a loss of $1.00 per diluted share, compared with a net loss of $5.9
million, or a loss of $0.34 per diluted share, for the same period in 2012. The companyâ€™s second quarter results reflect
the positive impact of acquisitions from prior periods and significant organic
growth, offset by planned strategic investments in long-term value creation,
transaction-related costs and litigation costs.

â€œEarnings (loss) before interest, taxes, depreciation and
amortization (â€œEBITDAâ€), a non-GAAP financial measure, was a loss of $12.4
million for the second quarter of 2013, compared with a loss of $3.0 million
for the same period in 2012. EBITDA
includes $1.1 million and $1.2 million of non-cash share-based compensation for
the second quarters of 2013 and 2012, respectively. The company had
$178.2 million of cash as of June 30, 2013.â€

Even though expedite freight was soft during the first six
months of 2013, capacity started to tighten early in July. This opens the
door for increased revenue for the third and fourth quarters. This will
assure that XPO Logistics, Inc. will meet its expected yearly revenue of 1
billion dollars by December 31, 2013.

XPO Logistics has grown over the last year to include 62
locations throughout the USA and Canada. Both cold start locations and
company acquisitions are the generators of this growth. XPO Logistics is
in the process of acquiring 3PD, Inc. (3PD) in a transaction valued at
approximately $365 million. 3PD is the largest non-asset, third party
provider of heavy goods, last-mile logistics in North America. The
acquisition is expected to close in the third quarter of 2013, subject to
customary conditions. The addition of 3PD, Inc. will expand XPO
Logisticsâ€™ offerings by providing last-mile services to XPO Logisticsâ€™ customer
base.

Bradley Jacobs is continuing his philosophy of high quality
customer service by hiring from communities where his company has
offices. In the last 12 months, XPO Logistics has hired over 800 new
employees and keeps staff on when a new company is acquired. All
employees are trained extensively in the latest technology and to provide a
â€˜delight to the customerâ€™ standard of service. â€œIt is my obligation as a
businessman to give back to the communities where we are located to put people
from the community to work when needed to keep the company growing. It is
good both for the company and the community,â€ states Jacobs.

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